UK employer - Where paid & where taxed ?

iMax

Hi,

I'm going for an interview for a job with a UK company tomorrow, if successful I would initially be the only employee in Ireland.

I could ask them to pay me in sterling to an ulster bank account, but if I do is there any benefit to me ? Also would I be taxed in the UK or here ?

Another possibility is that I would have my own company here & invoice them, would that be more beneficial ?

Thanks in advance

Delancey

iMax wrote: »

Hi,

I'm going for an interview for a job with a UK company tomorrow, if successful I would initially be the only employee in Ireland.

I could ask them to pay me in sterling to an ulster bank account, but if I do is there any benefit to me ? Also would I be taxed in the UK or here ?

Another possibility is that I would have my own company here & invoice them, would that be more beneficial ?

Thanks in advance

Paying you in Sterling as a UK based employee is not an option if you are tax resident in the Republic of Ireland - if living here you must pay tax here , be aware that getting paid in £ STG will incur possibly significant Foreign Exchange charges which would eat into your pay.

There are advantages and disadvantages to invoicing them as your own company - you would be able to claim certain expenses that you could not do as an employee for example but there are downsides like the cost of setting up and the possible adverse impact on your entitlement to State Benefits.

exaisle

There is a fairly distinct definition of what constitutes a contract of service and what constitutes a contract for services and Revenue have strict guidelines on the matter.

The cheaper option for you is to be an employee and for your employers to deduct PAYE etc. As an employee you can claim various expenses such as mileage and subsistence. If you were self employed and invoiced your "employers" for services, this option is not available to you unless you form a limited company and become a director (and therefore an employee) of that. However, that involves you in substantial set up and continuous administrative costs (like paying somebody like me to do your tax returns!).

Delancey is quite right in saying that your entitlement to state benefits could also be affected, as proprietory directors (which is what you would be...a director who owns their own company) pay the same PRSI rate as self employed persons. They are not entitled to pay related benefits should they become unemployed.

On the question of payment...Id opt for a fixed salary in Euro and remove the risk of currency fluctuations....but you could also opt to be paid in sterling...